What does earnings before interest, taxes, depreciation and amortization mean?
Definitions for earnings before interest, taxes, depreciation and amortization
earn·ings be·fore in·ter·est, tax·es, de·pre·ci·a·tion and amor·ti·za·tion
This dictionary definitions page includes all the possible meanings, example usage and translations of the word earnings before interest, taxes, depreciation and amortization.
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Wikipedia
Earnings before interest, taxes, depreciation and amortization
A company's earnings before interest, taxes, depreciation, and amortization (commonly abbreviated EBITDA, pronounced , , or ) is a measure of a company's profitability of the operating business only, thus before any effects of indebtedness, state-mandated payments, and costs required to maintain its asset base. It is derived by subtracting from revenues all costs of the operating business (e.g. wages, costs of raw materials, services ...) but not decline in asset value, cost of borrowing, lease expenses, and obligations to governments. Though often shown on an income statement, it is not considered part of the Generally Accepted Accounting Principles (GAAP) by the SEC and the SEC hence requires that companies registering securities with it (and when filing its periodic reports) reconcile EBITDA to net income.
Wikidata
Earnings before interest, taxes, depreciation and amortization
EBITDA or is an acronym for Earnings Before Interest, Taxes, Depreciation, and Amortization. As its name suggests, it is created by considering a company's earnings before interest payments, tax, depreciation, and amortization are subtracted for any final accounting of its income and expenses. The EBITDA of a company gives an indication of the current operational profitability of the business, i.e. how much profit does it make with its present assets and its operations on the products it produces and sells. Though EBITDA is not a financial metric recognized in generally accepted accounting principles, it is widely used when assessing the performance of companies. It is intended to allow a comparison of profitability between different companies, by canceling the effects of interest payments from different forms of financing, political jurisdictions, collections of assets, and different takeover histories. A negative EBITDA indicates that a business has fundamental problems with profitability. A positive EBITDA, on the other hand, does not necessarily mean that the business generates cash. This is because EBITDA ignores changes in Working Capital, capital expenditures, taxes, and interest.
Numerology
Chaldean Numerology
The numerical value of earnings before interest, taxes, depreciation and amortization in Chaldean Numerology is: 3
Pythagorean Numerology
The numerical value of earnings before interest, taxes, depreciation and amortization in Pythagorean Numerology is: 4
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"earnings before interest, taxes, depreciation and amortization." Definitions.net. STANDS4 LLC, 2024. Web. 17 Apr. 2024. <https://www.definitions.net/definition/earnings+before+interest%2C+taxes%2C+depreciation+and+amortization>.
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